China's Manufacturers Will Just Have to Cater to the Home Market

On the shelves of Chinese shops is the usual assortment of toys, clothing, appliances and cookware. But over the past month the quality of many of the goods on offer has improved. In part this is because scandals over toxic paint and poisoned milk have brought closer scrutiny from inspectors and hence less corner-cutting. But it is also partly because of falling demand for Chinese goods from America, Europe and the Middle East, which has given China's manufacturers and local government a big incentive to work around the country's formidable export-promotion policies and to sell at home.
Source: The Economist